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Reddit's $60 Million Deal With Google Will Feed Generative AI

Feb 23, 2024 - cnet.com
Reddit has struck a $60 million deal with Google to use its user-generated content to train Google's generative AI models. The move could provide a new revenue stream for Reddit, which primarily relies on ad sales, and will allow Google to include more Reddit results in its search function. The partnership will enable more content-forward displays of Reddit information, according to Rajan Patel, Google's vice president of Search Experience. However, the impact of Reddit's training data on future Google AI products is yet to be seen.

The deal underscores the value of user-generated content for generative AI platforms, which are trained on vast amounts of text data from across the internet. More data, particularly from humans, can make these models sound more human-like. However, there are concerns about the potential for the AI to absorb both positive and negative aspects of Reddit's content. Reddit, which was valued at $10 billion in 2021, may also sell stock to some of its most loyal users, according to The Wall Street Journal.

Key takeaways:

  • Reddit has made a $60 million deal with Google to use its user-generated content to train Google's generative AI models.
  • The deal could provide a new revenue stream for Reddit, which currently relies heavily on ad sales, and will allow Google to include more Reddit results in its searches.
  • Google's AI products might take in both the good and bad aspects of Reddit's content, potentially leading to challenges in filtering out toxic elements.
  • Reddit, which was valued at $10 billion in 2021, may sell stock to some of its most loyal users as a way to appease them, especially those willing to protest against or boycott the platform.
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